VOIP Simplified

BEFORE VOIP - CIRCUIT SWITCH TECHNOLOGY (PSTN) - Traditional Phone Service

Starting with Ma Bell, phone companies have used what is referred to as 'circuit-switched technology' to send and receive telephone calls. This technology makes a connection between the calling and the receiving parties for the entire duration of the call.

The limitation with circuit-switched technology is that it requires a significant amount of bandwidth for each call, and it only supports limited types of calls (i.e. telephone to telephone/fax/modem). The hardware needed to run traditional circuit-switched networks is very expensive. The higher cost of the hardware and the inefficiencies of using dedicated bandwidth for individual calls has caused many telephone companies to use parts of the Internet to connect PSTN calls. You may have already received or made calls using VoIP technology without knowing it.

VoIP TECHNOLOGY

VoIP refers to calls that travel networks using Internet Protocol (IP). The voice stream is broken down into packets, compressed, and sent toward its final destination by various routes as opposed to establishing a 'permanent' connection for the duration of the call.

At the receiving end, IP packets are reassembled, decompressed, and converted back into a voice stream by hardware and software elements. Whether the call originated on a PC, telephone, or an Integrated Access Device (IAD), and whether it is going to be terminated on a PC, telephone, or IAD, will determine the type of software and hardware needed to initiate and complete the call. Today through new technology and innovation the quality of a VOIP call is considered to be equivalent to circuit-switched technology. Costs are not the only benefits VOIP provides. Most VoIP providers offer services and features, such as online account management, conference calling, call forwarding, answering services, automatic call distribution service and more.